FINANCIAL RESOURCE MANAGEMENT
Fact or Opinion—
Ethics in Purchasing
What steps does your district take to ensure
the purchasing process is ethical?
By Kimberly Bauer
T
he American Heritage Dictionary defines
“ethics” as “the rules or standards governing
the conduct of a person or the members of a
profession.” However, the dictionary definition
of ethics isn’t as important as how we use ethics to guide
our daily behavior.
The question of whether ethics are a matter of fact
or opinion is highly debated. Consider the following. If
right and wrong are a matter of opinion, and you believe
taking a pen from the office isn’t wrong, would someone have the right to reprimand you for taking the pen?
How you spend your tax-dollar-paid time is also an ethical question. You may call in sick because you don’t feel
like going to work. You reason that you
have sick leave—it’s your time, and you
have the right to take it. Are you wrong?
Is it ethical to go to work but spend your
time shopping on the Internet?
Is there a difference between legal and
ethical behavior? If you are driving in the
middle of nowhere and no one is around,
do you come to a complete stop at a stop
sign, or do you just slow down a bit?
That simple question leads to a selfexamination of whether your ethics are
grounded in the desire to behave ethically
or in the likelihood of your getting caught. For example,
it is against the law to run a stop sign regardless of
whether someone sees you, but it is not against the law
to tell a lie unless you are under oath. Both, I’m sure you
agree, are unethical, but where do you draw the line? If
there were no laws, regulations, or policies, what would
dictate your ethics?
job after a state audit revealed problems in the district’s
accounts. There was no evidence of fraud; however, there
was strong evidence of employees’ lack of knowledge and
failure to follow board policies. The school escaped fines,
but the publicity caused a loss of the public’s trust. As a
result, the district was unable to pass the next bond issue,
and the superintendent lost his job.
Most of us receive instruction on how to carry out
day-to-day tasks; however, we are not always given
the reasons why they are done that way. When the
rules, regulations, and laws behind a procedure are not
explained and understood, the fallout can be more than
financial.
Education Is Key
I believe most procurement issues are less about poor ethics and more about poor information, practices, and procedures. For example, a superintendent recently lost his
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We should all be accountable for our own education
and for the education of those we supervise. Here are
some points to get you started:
• Know board policy. Your board of education adopts
policies that are unique to your district. It is important for all employees to read and understand those
policies regardless of job title.
• Know state laws. Most states publish the statutes
online on the state’s procurement website.
• Know federal law. Laws concerning federal money
are strictly defined. Make sure you and your teams
are familiar with them.
• Keep up with changes. Laws change constantly. Stay
informed!
• Follow the law. Just knowing the law is not enough.
• Network! Get to know others in your profession.
ASBO International has a great network of professionals who come from every position in the international school business community. If you need help,
ask for it; they are eager to help. Visit ASBO’s website
at asbointl.org. An email discussion forum is available
for posting questions. Oklahoma ASBO teams with
a state university to provide education. Check your
ASBO affiliate for similar classes.
Ethics of Procurement
Here’s list of dos and don’ts related to purchasing in
your district:
• Concentrate on what you can control. Consistently
run a clean, honest procurement process. When asked
for your professional opinion, give it. If the process
is not operated ethically, if accurate records are not
kept, and if the rules are not followed, the entire process is jeopardized. If the final decision does not follow district policy, the law, or good ethical behavior,
speak up. The decision may not always be yours, but
making sure that all of the facts are given accurately is
your ethical responsibility.
• Be consistent. Once precedence has been set, follow it.
• Do not become tempted to take shortcuts. Don’t try
to find a way around the process. It is much easier to
do something the correct way the first time.
• Be mindful of the importance of perception. Going
out to lunch or dinner with a vendor is not against
the law (up to a point). Even if you pay for your own
meal, a board member or reporter who sees you may
assume the worst. If you recommend that vendor, no
amount of explaining will erase the perception surrounding your having lunch together.
• Don’t let your friendly relationship with a vendor
cross the line. You may run into vendors outside the
office at school functions, at church, or at the store.
Agree not to discuss work outside the business office
setting. Ethical vendors will understand and appreciate your integrity.
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• Never make verbal or written promises to a vendor
until your board has acted. If you inform vendors
that they have been selected, they may buy items in
anticipation of the award. But if the board does not
follow your recommendation, your district may be
monetarily liable for the items purchased.
• Never discuss a quote or unsealed bid that has been
received until all bids are in and the tabulation is
released.
• Never manipulate quotes. Never purposefully seek
out quotes that are higher or lower in order to use or
not use a particular vendor.
• Give all vendors equal access. A mandatory prebid
meeting is the best way to ensure that everyone has
the same information at the same time. Invite key district personnel so vendors can ask questions.
• Do not allow contact between vendors and school
personnel during a bidding process. Encourage your
sites to inform you immediately if a vendor contacts
them during a bidding process.
• Communicate everything in writing via email or fax.
Never have verbal communication with a vendor during a bid phase.
• Avoid using specific brand names or models in your
specifications. If you receive specifications from
another department, make sure you know their source.
• Be fully transparent about your sources. Try to
avoid using a single vendor to help you build specifications for a bid. If it’s unpreventable, add a disclaimer to your bid stating, “One or more vendors
who may respond to the bid request assisted in the
building of these specifications.” You should also
explain to the vendor or vendors who help build
specifications that their work will be shared with
others when the bid is released.
• Don’t assume that others have the same ethics. Report
anything that is questionable.
• Take responsibility for your actions. No one is perfect. We all make mistakes. You have been placed in
a position of trust, so make every effort to be worthy
of that trust.
• Don’t allow your emotions and personal feelings to
affect your decisions. They have no place in the procurement process. Regardless of whether a vendor has
hospital bills or you play golf or attend church with
a particular vendor, do not allow such situations to
influence your decisions.
• Remember, if you have to question whether an action
or a statement is unethical, it probably is.
Life is full of compromise, but you should never
compromise your ethics. Don’t forget, we are here for
the children.
Kimberly Bauer is purchasing director for Norman Public
Schools, Norman, Oklahoma. Email: kbauer@norman.k12.ok.us
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